CAN PLEASE SOMEONE HELP..... The table below shows the aggregate sales forecasts
ID: 444297 • Letter: C
Question
CAN PLEASE SOMEONE HELP.....
The table below shows the aggregate sales forecasts for a product family for the year along with the number of working days per month. The forecasts are shown in dollar amounts ($ million). Furthermore, the following assumptions are made:
Average sales value per unit is $30.
Number of units produced per employee per day is 8.
Hiring cost per employee is $200.
Firing cost per employee is $500.
Inventory carrying cost per unit per month is 2%.
Beginning and ending inventories are 115,000 units.
Beginning labor force is 1,437 persons.
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Forecast (in millions $)
7.6
8.4
10.2
9
11.8
7
8.6
12.6
14.4
12.8
15.8
11.8
Working Days/Month
20
21
23
20
22
22
10
23
20
22
20
20
Use a time-phased plan in tabular display to show the forecast in units (1,000 units), the projected number of employees per month, the projected inventory per month in 1,000 units, the projected value of inventory in 1,000 $, and the days of supply per month when a chase strategy is used.
Repeat (a) with a level strategy.
Compare the total cost of the chase strategy versus the level strategy.
Design a hybrid strategy that will cost less than either the chase strategy or the level strategy.
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Forecast (in millions $)
7.6
8.4
10.2
9
11.8
7
8.6
12.6
14.4
12.8
15.8
11.8
Working Days/Month
20
21
23
20
22
22
10
23
20
22
20
20
Explanation / Answer
Given Information :
Number of units produced per employee per day = 8.
Hiring cost per employee = $200.
Firing cost per employee = $500.
Inventory carrying cost per unit per month = 2%.
Beginning and ending inventories = 115,000 units.
Beginning labor force = 1,437 persons
Now all above information shows clear picture about the profit at respected month.
If we want to implement hybrid strategy following points are important.
1) Reduce the hiring & Firing cost
2)Minimise the inventory carrying cost
3) If possible company use automation then the labor cost can be reduced.
So while formulating hybrid strategy above mentioned points can help definately.
1 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2 Forecast (in millions $) 7.6 8.4 10.2 9 11.8 7 8.6 12.6 14.4 12.8 15.8 11.8 3 In No 7600000 8400000 10200000 9000000 11800000 7000000 8600000 12600000 14400000 12800000 15800000 11800000 4 Working Days/Month 20 21 23 20 22 22 10 23 20 22 20 20 5 Sale Value $30/unit Row 3* 30 228000000 252000000 306000000 270000000 354000000 210000000 258000000 378000000 432000000 384000000 474000000 354000000 6 Beginning Inventroy 115000 Endining Inventory 115000 7 Items needs to produce 7485000 8400000 10200000 9000000 11800000 7000000 8600000 12600000 14400000 12800000 15800000 11800000 8 Inventory Carrying cost 2 % Row 5* 2% 4560000 5040000 6120000 5400000 7080000 4200000 5160000 7560000 8640000 7680000 9480000 7080000 9 Labors Needed (1 Labor produce 8 units) (Row 7)/8 935625 1050000 1275000 1125000 1475000 875000 1075000 1575000 1800000 1600000 1975000 1475000 Row 11/No of working days of prsent month 46781.25 50000 55434.78261 56250 67045.45455 39772.72727 107500 68478.26087 90000 72727.27273 98750 73750 10 Present Labor 1437 11 Exact Labor required 45344.25 50000 55434.78261 56250 67045.45455 39772.72727 107500 68478.26087 90000 72727.27273 98750 73750 0 12 Hiring Cost +Firing cost =$ 1000 Row 11 * $1000 45344250 50000000 55434782.61 56250000 67045454.55 39772727.27 107500000 68478260.87 90000000 72727272.73 98750000 73750000 0 13 Total cost Row 8+12 49904250 55040000 61554782.61 61650000 74125454.55 43972727.27 112660000 76038260.87 98640000 80407272.73 108230000 80830000 0 14 Profit Row 5 - 13 178095750 55040000 61554782.61 61650000 74125454.55 43972727.27 112660000 76038260.87 98640000 80407272.73 108230000 80830000 0Related Questions
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